CarMax fills a void in the car buying experience where you don't have to haggle, they have in-house financing that will cover a lot of marginal buyers, and they will buy decent late model cars directly.
The other feature they have over traditional dealers is the ability to ship cars in from other locations. This is especially appealing to someone who is looking for a particular model/color/trim, etc. I just read a couple of articles that closely analyzed their business model, and these were some of the reasons why people bought from them. Think about it: If the traditional car buying experience gives you the willies or you know what you want and just want to buy it without dealing with all the crap that goes on with a dealership, paying a small premium is acceptable to a lot of buyers. Interestingly, a number of buyers they surveyed went to them for rare or unusual models that the dealers were charging excessive amounts for because the demand exceeded the availability. In these cases, CarMax charged market prices and did not inflate them, making them a better deal than the stealerships. I have sold them cars and found the process quick and painless. I'm not sure I would buy a car from them, but I can see a need for them in the market. Dan On Aug 16, 2012, at 11:21 AM, Donald Snook <dsn...@mtsqh.com> wrote: > Just be sure that I was still accurate, I checked Carmax just now. I looked > for a Black Nissan Altima with leather seats. It has 23,000 miles. The > price -- $18,599 in Oklahoma City. The Kelly Blue Book Value for Excellent > Condition RETAIL price is $17258. This WAS THE FIRST CAR I LOOKED UP. Why > should I pay $18,599 with no negotiation when the Bluebook price is $1300 too > much. I know that KBB is only a guide. But, I think the no haggle price is > B.S. when its higher than the book. > > I checked another one. One of my partners has an Acura TL that he really > likes. So, I pulled up a 2011 Acura TL with 23,000 miles in Tulsa. This one > isn't as bad, but Carmax is still more than $1000 higher than the book. > > Donald H. Snook > _______________________________________ > http://www.okiebenz.com > For new and used parts go to www.okiebenz.com > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
